Imagine a government that pays for a program such as a small business incubator. In this over-simplified mental exercise, we see that socialism may not necessarily be the end of all things freedom, but rather can actually lead to market participation.
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Actually, socialism has varying definitions, or better, descriptives giving rise to descriptions. So which are you talking of?
The multitude of interpretations produce diverse practices. The concept, as you said, does not necessarily kill freedom. But because you said necessarily, that means in some ways, it can.